Why Health & Social Care Can’t Keep Settling for the Minimum

If you work in supported living, you’ll be all too familiar with the ongoing pressures faced across the UK: stretched teams, increasing demand, and fragile funding just to name a few. The recent June 2025 Spending Review brought welcome news of additional investment, including £29 billion more for the NHS and £4 billion for adult social care by 2028–29. However, many within the sector remain concerned that, while helpful, this funding may still fall short of addressing deeper, systemic challenges.

What the Spending Review Promised

The 2025 Spending Review offered a mix of reassurance and caution for the health and social care sector. On the surface, the figures appear encouraging, but as many sector voices have pointed out, the true impact depends on how and where this money is delivered.

Health and social care day-to-day spending will grow by 2.7% between 2023–24 and 2028–29, from £177.9bn to £232bn.

NHS budgets will see a 3% annual real‑terms uplift, reaching around £226 billion by 2028–29.

An extra £4 billion for adult social care is planned, delivered via local councils and the Better Care Fund – although this is partly reliant on council tax increases.

Local authority budgets are projected to grow 3.1% per year in real terms, again with council tax increases playing a key role.

These steps are a positive start, but voices from organisations like ADASS and The Health Foundation have raised concerns that, without targeted investment into frontline services and workforce support, we risk missing the opportunity to bring about meaningful change.

“While this funding will help local councils continue to provide care and support to people in the short term, it doesn’t solve longstanding issues such as access to care, workforce challenges and support for carers,” said Jess McGregor, President of ADASS. “We need to press ahead with the Casey Commission to find solutions that can bring sustainable reforms for the long term.”

Similarly, The Health Foundation has welcomed the government’s direction but stresses that priorities must now include stabilising the current system and creating a fairer, long-term funding model.

Why Doing Only the Minimum Isn’t Enough

1. Rising Demand, Static Resources

Since 2009–10, social care funding has fallen 2.6% in real terms, despite growing demand. The Health Foundation estimates that £3.4 billion more is needed by 2028–29 just to keep pace, potentially up to £6.4 billion to improve access. The recent Spending Review is a good starting point, but many argue it does not yet meet the scale of need.

2. Workforce Cost Pressures

Rising wage and National Insurance costs are placing extra strain on providers, an estimated £2.8 billion in added costs, without matching uplifts in local authority fees. With vacancy rates in social care higher than the NHS (currently around 8.3%), many in the sector are calling for a coordinated response to ensure sustainability.

3. Reactive Rather Than Preventative

Public health grants remain 27% lower than in 2015–16, limiting early intervention efforts. Mental health-related crises that could have been prevented earlier are instead escalating, increasing strain on emergency services and specialist care.

What This Means for Supported Living Services

When funding only meets the minimum, the consequences are clear:

Staffing pressures lead to fatigue and impact the consistency of support.

Delayed interventions escalate into avoidable emergencies.

Reduced capacity and choice in supported living push people toward more restrictive, higher-cost options, often away from their communities.

A recent study highlighted £71 million in avoidable NHS costs due to delayed mental health discharges linked to a lack of supported housing. These are precisely the outcomes that supported living aims to prevent, with the right tools.

How Northern Healthcare Is Responding

While national strategies continue to evolve, we believe there’s also a role for providers to lead with empathy and action. At Northern Healthcare, we’re committed to bridging the gap between health and social care through our person-centred, recovery-focused supported living model.

Our approach includes, but is not limited to:

Self-contained, high-quality homes with 24/7 support from clinically informed teams.

Timely referrals, with 95% reviewed within 10 working days.

Environments that prioritise well-being, therapeutic support, and community inclusion.

Whether someone is transitioning from hospital or developing independent living skills, our services provide a structured yet flexible foundation for progress.

We’ve seen how clinically supported housing can reduce pressures on acute services and prevent re-admissions. Our experience supports growing sector calls to recognise supported living as a vital part of the mental health care pathway, not just an add-on, but a core component of recovery.

What Needs to Change

There is strong consensus across the sector on the following priorities:

Ensure funding reaches front-line providers, not just national budgets.

Deliver on the Fair Pay Agreement, with protections against trade-offs in service quality.

Restore public health grants to 2015–16 levels, allowing for earlier intervention.

Secure multi-year, flexible funding settlements so that councils and providers can plan effectively.

Ultimately, this isn’t just a conversation about short-term fixes. It’s about rebuilding a system rooted in trust, dignity, and fairness for people in care, the professionals who support them, and dependent communities. Real change means giving supported living services stability to thrive, so every person has the opportunity to live well, with the right support, at the right time.

So What Now?

The 2025 Spending Review signals progress, but there’s more to do. Efficiency must never come at the cost of quality, and many within the sector are calling for bold, long-term thinking to accompany short-term stability.

At Northern Healthcare, we will continue to invest in people, places, and processes that deliver better outcomes, because for the individuals we support, every step forward matters.

Our message is aligned with what many in the sector are already voicing: supported living is an essential healthcare service; it can transform lives and relieve pressure across the health and social care system.

We’re proud to be part of that transformation. And we’ll continue to do more because those we support deserve nothing less.